Question 2 One of the chemical fertilizers produced by Ozone Chemicals passes two processes. In Process 1, normal losses are 20% of input whilst in Process 2 normal losses are 10% of input. The losses can be sold for RM1.20 per kg for Process 1 and RM1.40 per kg for Process 2. For February 2007, the following data were recorded:- Process 1 Direct material of 9,000 kg at RM1.65 per kg Direct labour cost of RM8,330(RM3.40 per hour) Production overhead is absorbed at RM2.60 per direct labour hour Actual output was 7,000 kg Process 2 Additional material of 600 kg of RM 1.80 per kg Direct labour of 1,000 hours ( RM3.40 per hour) Production overhead absorbed RM 2,900 Actual output was 6,900 kg. Note: The price per unit is to be calculated to four decimal places and all other calculations are to be rounded up to nearest RM. Required: a. Prepare Process 1 and Process 2 Accounts of the company.

Question 2 One of the chemical fertilizers produced by Ozone Chemicals passes two processes. In Process 1, normal losses are 20% of input whilst in Process 2 normal losses are 10% of input. The losses can be sold for RM1.20 per kg for Process 1 and RM1.40 per kg for Process 2. For February 2007, the following data were recorded:- Process 1 Direct material of 9,000 kg at RM1.65 per kg Direct labour cost of RM8,330(RM3.40 per hour) Production overhead is absorbed at RM2.60 per direct labour hour Actual output was 7,000 kg Process 2 Additional material of 600 kg of RM 1.80 per kg Direct labour of 1,000 hours ( RM3.40 per hour) Production overhead absorbed RM 2,900 Actual output was 6,900 kg. Note: The price per unit is to be calculated to four decimal places and all other calculations are to be rounded up to nearest RM. Required: a. Prepare Process 1 and Process 2 Accounts of the company.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1 of 12 Assignment: 1 Case: 1 The Cost Sheet of a product is given as under: Direct Materials Direct Wages Factory Overheads: Fixed Variable Administrative Expenses: Selling and Distribution Overheads: Fixed Variable Total OMR 6.00 3.00 0.50 0.50 0.75 0.25 0.50 11.50 The selling price per unit is OMR 13. The above figures are for an output of 85,000 units, the capacity of the firm is 100,000 units. A foreign customer is desirous of buying 15,000 units at a price of OMR 10.50 per unit. (A) Advise the manufacturer, whether the order should be accepted. (B) What will be your advice, if the orders were from a local merchant, at the same price? (C) What would be the profits, if the local selling price falls to OMR 11 from OMR 13, after acceptance of the order from a local merchant?
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6 Dake Corporation's relevant range of activity is 2.000 units to 6.000 units. When it produces and sells 4,000 unts, its average costs per un are as follows Average Cost per Unit $ 6.55 $ 3.50 $ 1.40 $ 2.60 5.0.70 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense $ 0.40 Fixed administrative expense Sales commissions $ 1.50 Variable administrative expense $ 0.45 For financial reporting purposes, the total amount of product costs incurred to make 4.000 units is closest to Multiple Choice $56.200
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Question 2 Like Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard cost per unit Actual costs used in production of 12,000 units Direct materials 1.80 feet at $6.00 per foot 24,000 feet purchased at a total cost of $139,800, used only 21,000 feet in production Direct labor 1.8 hours at $18.00 per hour 22,800 hours at $17.40 per hour. Variable overhead 1.8 hours at $10.00 per hour 22,800 hours at a total cost of $250,800 Required: 1, Compute the total standard costs and total actual costs for May’s production. How much is the difference in the total cost and unit cost? (Actual material costs should include actual costs of the materials used in production.) 2, Compute the following variances for May: a, Materials quantity and price variances.b, Labor efficiency and rate variances.c, Variable overhead…